Business & Money | Tuesday 15 December, 2015 10:09 am |

Fawaz Alhokair & Co (Fawaz Alhokair), the leading fashion retail business in the Kingdom of Saudi Arabia, has been ranked joint first in the global fashion and luxury sector for delivering total shareholder returns* according to a report by Boston Consulting Group (BCG)*. Fawaz Alhokair achieved an average annual total shareholder return of 58.4% for the five year period from 2010 through to the end of 2014. The returns were the highest in the fashion and luxury sector, which includes global producers and retailers with a minimum market cap of USD $4.5 billion.

 

Commenting on the results of the BCG research, Dr Abdul Majeed Al Hokair, President of Fashion Retail said: “We are proud to be recognized for the top quartile returns we have given back to our shareholders over the past five years. This has been an outstanding period of growth and expansion, whilst at the same time we have continued to make improvements to how we run operations to maximize efficiencies and create value for our shareholders. We are also proud of the hard work and commitment of our people in supporting the growth of the business and helping to deliver these stellar returns to our shareholders.

 

“Fawaz Alhokair is one of the most recognised names in the fashion and luxury sector in the Middle East. This latest survey shows that we are now being recognized at a global level, on a par with the world’s leading fashion and luxury brands.

 

“Looking ahead to the next four years, we are confident we will continue to consistently deliver above average returns not just in the fashion and luxury segment, but the wider consumer and retail segments as the business goes from strength to strength.” 

 

Fawaz Alhokair has grown to be the largest franchise retailer of fashion retail in the KSA, MENA, Central Asia and Caucasus regions, and is the only listed business of its type in the Middle East. Since the opening of its first store in 1991, Alhokair Fashion Retail now trades in more than 2,194 stores across 100 shopping malls in 16 countries, with a retail platform operating on a total GLA of over 600,000m². The company was listed on Saudi Stock Exchange ‘Tadawul’ on 23 December 2006. 

 

*Total shareholder return (TSR) measures the combination of share-price gains and dividend yield for any given company’s stock over a period of time. The model uses the combination of revenue (sales) growth and changes in margins to indicate the company’s improvement in fundamental value. It also uses the change in the company’s valuation multiple to determine the impact of investors’ expectations on TSR. Together, these two factors determine the change in the company’s market capitalization and the capital gain or loss to investors. Finally, the model looks at the distribution of free cash flow to investors and debt holders in the form of dividends, share repurchases, and repayments of debt to determine the contribution of free-cash-flow payouts to the company’s TSR.